In re Technocraft Construction Private Limited (GST AAR Rajasthan)
The Rajasthan Authority for Advance Ruling (AAR) has concluded that the services provided by Technocraft Construction Private Limited for the installation of a sewer system in Bikaner are taxable under GST and do not qualify for exemption under entry 38 of Notification No. 13/2017-CT (Rate) dated June 28, 2017. The ruling was based on a thorough examination of the application, supporting documents, and both oral and written submissions presented during the hearing.
Technocraft was contracted by Nagar Nigam Bikaner to deliver various services, including the design, construction, installation, and testing of a sewerage system along with the establishment of a sewage treatment plant and associated works. The applicant argued that their services should fall under sanitation and conservancy as defined by a recent amendment in Notification No. 13/2023-CT (Rate), effective from October 20, 2023. However, the AAR determined that the nature of the work—classified as a “works contract”—does not fit within the parameters of the exempted services outlined in the mentioned notifications.
The AAR further clarified that the definition of a “works contract” includes contracts involving the construction and installation of immovable properties, which applies to Technocraft’s sewer system project. According to the detailed scope of work outlined in the bidding documents, the contractor is responsible for ensuring that the sewerage network meets specified technical and quality standards, alongside a comprehensive operational and maintenance plan. The ruling underscored that the applicant is engaged in supplying goods along with services, thereby affirming the taxable status of the contract.
